Monday 24 April 2017

Oaktree to pay £115m for Nama UK portfolio

Nama's headquarters in the Treasury Building in Dublin
Nama's headquarters in the Treasury Building in Dublin
Peter Flanagan

Peter Flanagan

US hedgefund Oaktree Capital Management is believed to have won the race to buy a portfolio of UK commercial property loans from Nama.

The US investment giant has agreed to pay the State bad bank £115m (€161m) for Project Albion.

The portfolio is made up mostly of commercial property loans from smaller borrowers in the UK. This was one of the first portfolios that Nama brought to the market that featured a number of smaller borrowers in the past 12 months and it is the second one to come to a conclusion this year. On Wednesday, Deutsche Bank was named preferred bidder for Project Maeve - a portfolio of loans tied to developer Gerry Barrett.

Project Albion had a par value of some £226m. By that measure, Oaktree will have secured a discount of around 49pc. That is far smaller than Project Maeve, which was sold at a discount of 88pc.

Bank of America had originally been believed to be the preferred bidder for this portfolio, however talks between the two sides broke down, prompting Nama to reopen the bidding process.

A spokesman for Nama declined to comment.

Irish Independent

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